Angel Morales, Esq. Collaborates with Tax Analysts: Puerto Rican Politicians Turn Backs on B2B Tax Increase, Conversion to VAT

The Tax Analysts presents Angel Morales, Esq. on May 2016 on article titled Puerto Rican Politicians Turn Backs on B2B Tax Increase, Conversion to VAT. The article discusses the tax increase and switch to VAT originally scheduled to take effect on April 1 but Governor Alejandro García Padilla issued an order on March 8 delaying their implementation for two months.

Angel Morales-Lebrón of Ferraiuoli LLC said the prospects of blocking implementation of the consumption tax revisions appear good. “Considering that all the candidates running for governor support the block and that the leaders of the legislature — including the minority — also support such (a) block, it is likely that (a) bill (rescinding the measures) would be approved”, he said. “And if the governor vetoes it, there seems to be a strong likelihood that there is support to surpass the veto”.

Morales-Lebrón said any attempt to preempt implementation of the legislation would take time. “One of the principal hurdles is the legislative process timeline, considering that the possibility of the veto and the process to surpass the veto, take a certain minimum amount of time”, he said.